Tata Consumer Products (TATACONSUM) Q4 24/25 earnings summary

Executive summary

• Q4 revenue grew 17% year-over-year (12% organic); India Foods up 27% (17% organic), India Beverages up 17% (9% organic), International up 5% (2% constant currency).

• FY25 consolidated revenue up 16% (9% organic); group net profit up 64% to INR 349 crore for Q4, and up 6% to INR 1,287 crore for the year.

• Growth businesses contributed 28% of India business, growing 24% organically in Q4.

• 41 new products launched in FY25; innovation-to-sales ratio for India at 5.2%.

• Integration of Capital Foods, Organic India, and other subsidiaries completed; margin synergies largely realized.

Financial highlights

• FY25 EBITDA up 8% to INR 2,502 crore; margin at 14.2%, down 110 bps due to tea cost inflation.

• Q4 EBITDA margin at 13.6% vs 16.1% last year; 14% decline in EBITDA year-over-year.

• Group net profit before exceptional items down 34% for Q4, but up 64% for the year.

• Net cash as of March 31, 2025: INR 1,808 crore.

• Dividend of INR 8.25 per share recommended for FY25.

Outlook and guidance

• Continued guidance of double-digit top-line growth and EBITDA growing ahead of revenue.

• Expectation of EBITDA margin expansion as tea costs normalize; target 15.2%-16% margin by Q2/Q3 FY26.

• Focus on accelerating growth in India Foods, innovation, and expanding distribution, especially in food service and pharma channels.

• Monitoring high coffee prices as a key risk for non-branded business into FY26.

• Continued investment in product and manufacturing capabilities for international growth.